Memorandum for the the Motion Picture Patents Company and the General Film Company concerning the investigation of their business by the Department of Justice / submitted by M.B. Philip and Francis T. Homer. (1913)

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.MiP carnberPO'Tio -^inrl diffic-ilt t <-. do. It ftlso founri i -nrT^ctic*»ble to coraoel the MBerc of such trojectin j i.ir-'chinr? to r)ut a pl-^te on thorn such rp those who h -.1 licenses to lanuf '^ cture puch mfichjnen were con-'ftlled to rut on, suoh pi •^t e restricting such r.achincs for use only vith notion pictures procured from licensed rnanui'nct urorp nd invortors. It therefore cpnr^ed is^uin;^ written licenses, -'nd it arranged with tho owners of the licensed erch^inf^QS to collect tMe royally of ;,2. n yf9f:k f»r the u?c of e«cn exhibitini^ m-ichine covered hj its re tents. It wns found that many of thi perronn n«/in,-^ liconp^jfJ exchnngea TspenteflLy leased motion picture? procure'^ fron the licensed manuf '^ct urori find iruportfrs to exiiibito re usin,' machines viiich nc-o not licensed und.r tho ^ nt cnt s Comp*=iny';3 projectin nachine r'it ent "^ , fron A'hi ch e.^hioitors tne T^errons runnin,j; such exchiingen did not colle-t ther roylty due for t;:e .?«•. of such machines. It was very diificult to detect this fniud, and its constant coranisaion deprived the Tat en's Conoany of the rojialtleB to uni ch it w:. «ntit ''d C:>r thd j-jo o " such exhioitinr, r.'jchin'??. Threo-f ou rths of f\l\ the oxchfln.jo licfuaer t'nt Tserc cancelled were no cancelled on account of the commipsion of these 'ind many otheW f raudn nnd tPiolations thereof*